The Zeeland-based office furniture company announced Thursday it had reached an agreement to acquire an 84 percent ownership stake in North America’s largest premium authored furniture retailer, Design Within Reach, for an estimated $154 million in cash.

The transaction, pending regulatory approval, is set to close July 28.

“Only a few industry insiders know for certain, but the Herman Miller Store’s online sales were probably less than $75 million last year,” Dunlap said. “DWR shipped $218 million in 2013.

“Both Internet sites sell their products at retail prices that are not only comparable, but are frequently identical,” he added.

Dunlap speculates the acquisition of DWR alone could push Herman Miller into $2 billion territory. The local company’s fiscal year closed May 31 with revenues of $1.882 billion.

“The acquisition is a surprise to many furniture industry professionals and perhaps an enigma,” Dunlap said. “For some, it makes little or no sense, but for others it is a natural fit for both parties and for the emerging e-commerce furniture industry.

“Both companies share cultures that are rich in great design and traditions for marketing iconic products.”

DWR, founded in 1998, operates 38 retail studio locations in the U.S. and Canada. It also happens to be the largest and fastest-growing retailer of Herman Miller’s furniture designs.

The final price tag of the purchase won’t be determined until the sale is finalized.

It is subject to adjustment for net debt, changes in working capital and other post-closing items.

As a result of the deal, Herman Miller estimates it will receive future tax benefits with a present value of approximately $10 million.

“Each of DWR’s shareholders will be entitled to receive approximately $23 per share on a fully diluted basis as a result of the acquisition,” Herman Miller Chief Financial Officer Greg Bylsma said.